The first step in performance planning and appraisal is to:
determine which employees have seniority
give every employee an aptitude test
provide feedback to top management
establish performance standards
create an orientation program for employees
The correct answer and explanation is :
Correct Answer: Establish Performance Standards
Explanation:
The first step in performance planning and appraisal is to establish performance standards because these standards serve as benchmarks against which employee performance is measured. Performance standards define the expectations for a job role, including productivity, quality of work, and behavioral competencies.
- Defining Expectations
Setting clear performance standards ensures that employees understand what is expected of them. These standards should be specific, measurable, achievable, relevant, and time-bound (SMART) to facilitate fair and effective evaluations. - Aligning with Organizational Goals
Performance standards must align with the company’s mission and strategic objectives. When employees understand how their performance contributes to business success, they become more motivated and engaged. - Basis for Performance Evaluation
Without predefined standards, evaluating employee performance would be subjective and inconsistent. Managers rely on these benchmarks to assess employees objectively and provide constructive feedback. - Enhancing Employee Development
Once performance standards are set, employees can identify areas for improvement. This facilitates training and development initiatives to enhance skills and efficiency. - Fair Appraisal System
Performance standards ensure that appraisals are fair and unbiased, reducing the chances of favoritism or discrimination. It also provides employees with a clear understanding of how promotions, bonuses, and career advancements are determined.
Why Not the Other Options?
- Determining seniority is related to promotions and benefits, not performance appraisal.
- Aptitude tests are typically used for hiring, not for performance planning.
- Providing feedback to top management happens after appraisals, not as the first step.
- Orientation programs focus on onboarding new employees, not on performance evaluation.
Thus, establishing performance standards is the critical first step in performance planning and appraisal.
